Intel Corporation (INTC) share price drag US indices lower.
US Indices Lower in pre-market trading Intel Corporation (INTC) share price decline more than 9%, after the chipmaker published fourth-quarter earnings that failed forecasts and provided softer outlook for the current quarter due to customers delaying tech purchases.
Traders are eyeing new reports from significant international businesses like Chevron (CVX), American Express (AXP), and Charter Communications Inc (CHTR) as the fourth-quarter earnings season continues. Comparatively to the 1.6% reduction that was anticipated at the beginning of the year, analysts predict that overall S&P 500 earnings would decline by 2.7% year over year in Q4.
The S&P 500, Nasdaq 100, and Dow all reached 6-week highs on Thursday as a result of advances in tech stocks following Tesla’s (TSLA) announcement of record quarterly revenue and exceeding earnings expectations. Las Vegas Sands Corp. (LVS) also experienced a +6% increase as the casino operator posted weaker-than-anticipated Q4 results but was upbeat about demand this year.
US Economic Rundown
Compared to predictions of +2.6%, the preliminary data from the Commerce Department revealed that the US. economy expanded at a +2.9% annualized rate in the fourth quarter as consumers increased their spending on products. A solid job market is demonstrated by the fact that claims for state jobless benefits decreased by 6,000 to a 9-month lowest of 186K in the Labor Department data released on Thursday.
US Economic Fundamentals in View
The Fed’s favorite inflation indicator, the US. core personal consumption expenditures (PCE) price index, is the subject of intense attention today. In comparison to November’s values of +0.2% m/m and +4.7% y/y, economists expect the Core PCE Price Index to be +0.3% m/m and +4.4% in December.
Markets will also probably pay attention to the US. Pending Home Sales figures, which in November were at -4.0% m/m. According to experts, the new value will be -0.9% m/m.
Today’s report on US. personal spending will be made. According to analysts, this number will be -0.1% m/m in December as opposed to the prior figure of +0.1% m/m.
Today’s US. Michigan Consumer Sentiment Index report will be released. According to forecasters, January’s number will be 64.6 as opposed to 59.7 in December. A report on the US. Michigan Consumer Expectations Index will also be released today. According to analysts, this number will be 62.0 in January as opposed to 59.9 in December.
United States 10-Year rates are at 3.548% in the bond markets, up +1.63%.
European Region Economic Parameter to Watch
Markets studied US. economic statistics and a slew of profit announcements this morning, remained cautious ahead of a slew of central bank meetings next week, and the Euro Stoxx 50 futures are higher +0.02%.
Investor focus now shifts to important central bank meetings taking place next week, including those of the Federal Reserve, the European Central Bank, and the Bank of England. In business-related news, shares of H&M (HMB.S. DX) fell more than 5% as the second-largest fashion retailer in the world disclosed a larger-than-expected decline in operating profit from September to November due to low consumer confidence and growing costs.
Today saw the publication of data on the Eurozone M3 Money Supply, Spain’s GDP, and France’s Consumer Confidence Consumer confidence in France for January has now been published at 80, below the expected level of 83. In the fourth quarter, the Spanish GDP increased by 0.2% q/q, beating forecasts of 0.1% q/q. The December M3 Money Supply for the Eurozone came in at 4.1% y/y, below the forecast of 4.6% y/y.
Asia Pacific Market Brief
Today’s Asian stock markets largely closed in the green. While the Chinese stock market was closed for the Lunar New Year vacation, Japan’s Nikkei 225 Stock Index (NIK) ended the day up +0.07%.
